Sephora Marketing Strategy: How It Sells Discovery

Sephora's marketing strategy works because it sells discovery, not just products: shoppers can test and compare beauty brands in stores, earn rewards through a free loyalty program that Glossy reports has passed 46 million members, and see new brands launch there first. LVMH, Sephora's owner, said in January 2026 that Sephora grew revenue and profit in 2025 and opened about 100 stores.

What is Sephora, and who owns it?

Sephora is a prestige beauty retailer owned by LVMH Moët Hennessy Louis Vuitton. LVMH reports it inside its Selective Retailing business group, which also includes the travel retailer DFS, so Sephora's own sales are not broken out in the group's headline figures.

LVMH described Sephora's 2025 performance as remarkable and said the retailer consolidated its position as world leader in beauty retail. Because Sephora is not a separately listed company, this article relies on LVMH's disclosures and trade reporting.

How did Sephora change the beauty shopping experience?

Sephora changed beauty shopping by letting customers try products across many brands in one store instead of asking a counter clerk for a single brand's items. Trade analysts describe this as open-sell retail, where brands sit side by side and shoppers test them directly.

That format matters to the brands as well as to shoppers. A retailer that carries many brands becomes a launch venue, and Sephora has used that role repeatedly. Business Today reported that Hailey Bieber's Rhode made a record-setting retail debut at Sephora, passing $10 million in U.S. sales within two days.

How does Beauty Insider encourage repeat business?

Beauty Insider encourages repeat business by giving members points, tiers and perks in a free program that rewards continued spending. Glossy reported that the program, launched almost 20 years ago, has acquired more than 46 million members.

Sephora has also moved the program toward activity-based rewards. In 2023 it launched Beauty Insider Challenges, a gamified feature, according to Glossy. Sephora's loyalty executives told Glossy they want the value of the program to be a two-way street for members.

Competition for those members is growing. Glossy noted that retailers from Walmart to Amazon now court beauty shoppers with same-day delivery and large sales events, so Sephora's loyalty perks have to compete with convenience.

What role do creators and social media play for Sephora?

Creators and social media give Sephora a steady supply of new products to feature, because founders and creators often use Sephora as the retail milestone for their brands. Everything-PR has profiled how Jackie Aina's FORVR Mood reached Sephora nationwide and how Laneige cracked Sephora in the United States.

The Rhode launch shows the other side of the exchange. A brand with a large built-in audience brings shoppers to Sephora, and Sephora's stores and app give the brand a place to convert that attention into sales.

For readers who want to know who runs Sephora's communications, see who handles Sephora PR.

What does Sephora's business performance show?

Sephora's performance shows steady growth even in a weak year for its parent group. LVMH's total revenue fell 1% organically in 2025, while Selective Retailing, led by Sephora, grew 4% organically.

These figures cover the whole Selective Retailing group, which includes DFS. LVMH singled out Sephora as the source of growth in both revenue and profit, but it did not publish a separate Sephora revenue figure in the release.

What can other retailers learn from Sephora?

Retailers can learn that experience and loyalty work best together: the store brings shoppers in, and the program gives them a reason to return. Four lessons follow from the evidence.

• Let customers test products before they buy, and carry enough brands that the store becomes the place they start searching.
• Treat launches as events. Sephora's role as a launch partner gives shoppers a reason to check back.
• Keep updating the loyalty program. Sephora added challenges nearly two decades after launch because rivals now offer fast delivery and big sales.
• Be clear about which numbers are public. LVMH reports Sephora inside a wider division, so claims about Sephora alone need careful sourcing.

Compare this approach with Ulta Beauty's loyalty and range strategy, and see the full How America Shops series.

Why does the Sephora model work?

The Sephora model works because the store, the loyalty program and the brand launches all give shoppers a reason to come back to the same place. Its main risk is the one Glossy identified: rivals now compete on delivery and sales events, so the experience has to stay worth the trip.

Sources

This article draws on LVMH's results release and trade reporting about Sephora's loyalty program.

• LVMH, "Solid performance in a disrupted global economic and geopolitical environment," 2025 full-year results release (January 2026)
• Cosmetics Business, "LVMH hails remarkable Sephora performance in 2025" (January 2026)
• Business Today Malaysia, "Beauty Delivers As Sephora Lifts LVMH In Challenging Year" (January 28, 2026)
• Glossy, "Beauty Briefing: How Sephora is evolving its loyalty program in a competitive retail environment"